An Index to Track Home Prices and Assess the Risk of a Housing Market Correction

The Desjardins Affordability Index (DAI) represents the combined effect of fluctuations in home prices, mortgage rates, other ownership costs (property taxes and utilities) and disposable income levels on the ability of households to purchase a home and cover the related costs. It can be used to assess risks to the housing market and track big swings in home prices. It’s calculated on a quarterly basis for Canada, Quebec, Ontario and all census metropolitan areas of these two provinces, as well as Calgary, Edmonton, Vancouver and Winnipeg.